Cloud-based business planning software used to be a solution that was associated with smaller businesses. However, in recent years, the viability of using a cloud-based enterprise resource planning software (ERP) has exponentially increased, to the point where surpasses the effectiveness of on-premise ERP, and allow your midsize business to cut major costs.
If you aren’t privy to the massive differences between cloud-based ERP and on-premise ERP, a cloud-based ERP is hosted through a server of a third-party vendor, and is able to be accessed through software on a desktop or mobile device. In the meantime, on-premise ERP means that the software is run and managed on an on-site server at a company’s location. Here are the ways that cloud-based ERP has started to develop on edge over on-premise ERP...
Utilize subscription-based pricing
One initial factor in deciding whether a business will use cloud-based ERP or on-premise ERP is cost. In this aspect, the two couldn’t be more different. The costs of on-premise ERP are capital costs, and are paid in entirety, upfront, to pay for an expensive licensing fee to use the business planning software. However, when by using cloud-based ERP, you end up with much more manageable costs, upfront, as the pricing is subscription-based. This translates to your ERP being more of an ongoing operating cost. This creates a lower barrier of entry for midsize businesses, and makes it easier to make the jump to ERP.
Enjoy advanced digital security
Even if a company would want to spend the upfront cost to purchase the licensing fee for on-premise ERP, there are other costs to be had, such as security. Digital security measures can be expensive to purchase for your on-site server. However, third-party cloud-based ERP providers need to provide for the safety of hundreds of clients, and invest in advanced digital security to protect their clients’ data. When you utilize cloud-based ERP, you get to enjoy powerful, reliable security that is inherent in your pay-as-you-go pricing structure.
Grow your software needs as your business grows
Different businesses require different needs from their business planning software. What a business wants from its ERP can change with time. However, it can be difficult and incredibly expensive to upgrade your on-premise ERP. On the other hand, cloud-based ERP software allows your business to pick and choose the services that you want, which means that you only pay for what you need, allowing you the flexibility to grow and shrink your ERP capabilities with your business’ unique needs.